McGraw-Hill Education Establishes First-Ever “Pay-For-Performance” Business Model In Partnership With Western Governors University

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McGraw-Hill Education and Western Governors University (WGU) today announced a landmark agreement to establish a “pay-for-performance” model in which McGraw-Hill will receive variable compensation for those WGU students who use MHE technology and services for a particular course and pass.

Through the partnership, McGraw-Hill Education will provide e-books and access to industry-leading adaptive learning tools including McGraw-Hill LearnSmart to Western Governors University’s (WGU) online courses. Under this new pricing structure, the university will pay a significantly discounted flat fee for McGraw-Hill’s course materials. In addition, WGU will pay McGraw-Hill a premium for each student who uses the materials and passes the course (a passing grade at WGU is equivalent to a letter grade of “B” or better). Through this new pay-for-performance model, universities and learning companies share in the accountability for student success and students gain access to premium educational materials while keeping costs low.

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